Get help with a generation skipping trust administration

Generation skipping trusts can be a great way to avoid having your assets taxed more than is necessary. Making sure your beneficiaries receive as much as possible is certainly an understandable goal. This week's column will discuss what this type of trust is and why it can prove beneficial to certain Michigan residents. It will also go over how an attorney can assist with the trust administration.

If you want to pass your assets on to your grandchildren, rather than your children, you can do this by creating a generation skipping trust. Why do this? There are very personal reasons for doing this; for example, some may just want to make sure that their grandchildren are provided for and others may simply decide that their children are not in financial need.

What good can come from creating a generation skipping trust? Two words come to mind: minimize taxes. If you have a large estate, the odds that your assets will be taxed more than once are fairly high, as they will be taxed if you pass them to your children and taxed again if they are then passed on to your grandchildren. Why give the government more than is necessary?

Trust administration, whether it is completed in Michigan or elsewhere, can be a complicated process. Even if your trust gives clear instructions, there may be those who object or, with generation skipping trusts, there may be issues with passing assets to minors. When it is time for your estate to be administered, your loved ones can turn to a skilled estate planning attorney in order to ensure that any issues that arise are swiftly and appropriately dealt with so that the administration process can be completed as quickly as possible. To learn more about trusts, please take a moment and visit our firm's website.